Porsche Struggling, Asks German Government for $2.5 Billion Loan
Porsche has reportedly asked the German government for a $2.5 billion loan, adding to speculation that the automaker is in financial trouble.
Much of Porsche’s money problems stem from the company overextending itself in its failed bid to take over Volkswagen, a move that, if successful, would have added $10 billion to Porsche’s coffers. As a result of the unsuccessful attempt the automaker now has a $12 billion debt load.
Like any other automaker these days Porsche is struggling with decreased sales. Profits will likely be high enough to make interest payments on the company’s debt, but not enough to pay it off.
Then again, according to German magazine Der Spiegel Porsche apparently skirted bankruptcy in March for three days by securing a $978 billion loan from VW.
Porsche is also likely to see a spike in both sales and profits in the near future as the Panamera arrives in dealerships. Perhaps it will be the company’s savior, like the the Cayenne was back in 2002.
[Source: LeftLaneNews and Autoblog]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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Gm would not be a loss to the Automotive World: Porsche, now that would be a loss!